- September 24, 2021
- Posted by: Mainframe Consulting
- Category: Business
The Association of Independent Professionals and the Self-Employed (IPSE) has welcomed the government’s decision to delay the roll-out of Making Tax Digital for Income Tax, saying it is “welcome breathing space,” before “another painful hit to the self-employed.”
IPSE has warned that after the financial impact of the pandemic, many freelancers are not ready to make the shift to Making Tax Digital, and that the quarterly reporting under the new system would be a “serious and heavy admin burden”. IPSE has argued government should raise the threshold for MTD above £10,000 in order to exempt the smallest businesses.
Andy Chamberlain, Director of Policy at IPSE said, “It is very welcome that the government has decided to delay the roll-out of Making Tax Digital for Income Tax. This will provide much-needed breathing space before another painful hit to the self-employed. After the financial impact of the pandemic many freelancers simply are not ready to make the shift to Making Tax Digital.
“Although we can see the benefits of digital record-keeping, we continue to have reservations about certain aspects of the change. The shift to quarterly reporting will be a serious and heavy additional admin burden for many freelancers. We continue to call on government to raise the threshold for MTD so the changes do not apply to the smallest businesses.”
Published at Fri, 24 Sep 2021 08:32:40 +0000